Q: I understand that Entrex has brought public market standards and disciplines to the private market. What does this mean for my employees and the possibility of stock ownership or options?
– Al Davenport, business owner, Pompano Beach, Fla.
A: This is a great opportunity to show your employees the value they bring to your company. Just imagine if employees could actually see quantifiable gains and losses in the value of the company through their efforts.
Public companies have the advantage of being able to option employees with shares that have quantifiable value. Now, by following the standards for public company disclosures and reporting, private companies and their shareholders can measure performance against established benchmarks.
As a company owner, you have the choice of providing limited distribution of company data or offering wide access to the community of alternative investors. In either case, by participating in the private company market, you provide employees the means of having a tangible quarterly valuation of their stock and ultimately, the possibility of liquidating their shares.
You didn’t mention whether you...